Finance
What to know:
- The Eigen Foundation, in a fit of unprecedented generosity, has graciously deigned to bless us with a governance proposal-prioritizing productive network activity over the lazy, unproductive masses 🎉.
- A newly formed Incentives Committee, a council of the most esteemed arbiters of value, would manage token emissions, favoring those who secure AVS and expand EigenCloud. Because nothing says “fairness” like a select few deciding who’s worthy 💸.
- The proposal includes a fee model that funnels AVS rewards and EigenCloud profits back to EIGEN holders, creating deflationary pressure as the ecosystem swells like a peacock in mating season 🦅.
The foundation behind EigenLayer’s restaking sorcery has proposed a governance overhaul to shower new incentives upon the EIGEN token-because apparently, rewarding productivity is the new black.
Under their grand plan, AVS rewards and EigenCloud fees will flow back to EIGEN holders like wine at a Roman banquet. AVSs, those blockchain services secured by staked tokens and honest operators, will now ensure that only the most “active” participants thrive. How democratic!
The team insists this will “align token economics with real usage,” which is corporate speak for “we finally noticed people stopped caring.”
“This aligns incentives: Stakers earn more, AVSs get funds, and EIGEN enjoys improved tokenomics,” they declared, as if revealing the secrets of fire 🔥.
EIGEN, once the belle of the Ethereum ball, has suffered a modest 91% decline this year, losing $700 million in market cap-because nothing says “secure future” like a token hemorrhaging value 🚨.
EigenLayer, that Ethereum-based marvel allowing users to “restake” crypto for securing services, was once the toast of the town. Now, it’s the slightly awkward guest at the party no one’s sure how to address.
Token buyback
Yet now, with the market’s patience thinner than a Victorian waif’s waistline, the foundation seeks redemption via buybacks. 20% of AVS fees will vanish into a contract designed to hoard EIGEN, reducing supply while the ecosystem “grows.” Because scarcity fixes everything, right?
Cloud fees from EigenAI, EigenCompute, and EigenDA will similarly vanish into the void for buybacks-turning base fees into golden EIGENs 🧙♂️.
This governance revamp addresses flaws in the old “Programmatic Incentives” model, which naively printed tokens like confetti at a parade. Weekly rewards for restaking? Quaint!
The new “Incentives Committee,” a blend of Eigen Foundation and Labs elites, will allocate rewards to the “productive.” They’ll adjust emissions policies faster than a maestro conducting a symphony-no tedious upgrades needed!
Details? Unknown. But rest assured, the committee will publish criteria “soon.” Probably.
If adopted, rewards shift from idle restakers to “productive stake”-tokens actively securing live services. Slashable? Naturally. Risk is for the bold, or the foolish. Your call.
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2025-12-19 20:30